2020 BROKER KIT

Subject to Change at any time without notice

©MERIX Financial 2020

Table of Contents

About MERIX Financial ......................................................................................................................................................................... 1

MERIX vs. Lendwise .......................................................................................................................................................................... 1

Who is NPX? ..................................................................................................................................................................................... 1

MERIX Corporate Partners ................................................................................................................................................................... 2

Paradigm Quest ................................................................................................................................................................................ 2

Computershare Trust Company of Canada ...................................................................................................................................... 2

First Canadian Title ........................................................................................................................................................................... 2

Mortgage Insurance ......................................................................................................................................................................... 2

Doing Business with MERIX and Lendwise ........................................................................................................................................... 3

MERIX and Lendwise Key Contacts ...................................................................................................................................................... 4

Compensation and Rewards ................................................................................................................................................................ 5

MERIX Compensation ...................................................................................................................................................................... 5

Lendwise Compensation .................................................................................................................................................................. 5

XRewards .......................................................................................................................................................................................... 5

basisPOINTS ...................................................................................................................................................................................... 6

Status Program ................................................................................................................................................................................. 6

Products and Policies ........................................................................................................................................................................... 7

Underwriting Matrix and General Guidelines .................................................................................................................................... 10

E-Signature Policy ............................................................................................................................................................................... 13

Income Confirmation Overview ......................................................................................................................................................... 13

Down Payment Confirmation Overview ............................................................................................................................................. 15

Closing the deal: Customer Options .................................................................................................................................................. 16

Assumptions ................................................................................................................................................................................... 16

Conversions (ARM rate or Fixed Rate) ........................................................................................................................................... 17

Mortgage Penalties ........................................................................................................................................................................ 17

Payment Frequencies ..................................................................................................................................................................... 18

Pre-Payment Privileges .................................................................................................................................................................. 18

Renewals ........................................................................................................................................................................................ 19

Taxes ............................................................................................................................................................................................... 19

Title ................................................................................................................................................................................................. 19

Title Insurance ................................................................................................................................................................................ 19

Welcome Letters ............................................................................................................................................................................ 19

1

About MERIX Financial

MERIX Financial operates 3 distinct industry-leading options: MERIX Financial, Lendwise, and

NPX. Since founding in 2005, MERIX Financial has provided residential mortgages to over 200,000

Canadians from coast-to-coast.

With over 29 billion dollars in funded mortgages, MERIX Financial focuses helping Canadians from

all walks of life realize the dream of homeownership. We invest in unparalleled customer service

and innovative technology and resources to ensure we provide customers with an unforgettable

home-buying experience.

The Originators we partner with are committed to delivering the highest level of service standards.

In return, MERIX provides them with tools to succeed and a host of innovative products, lending

programs, compensation, and reward plans.

I thought there was a need in the market place for creating future wealth for

originators; no other lender is focused on that. The market place can always use a

lender, a resource, a supplier, who is innovative and is looking to do things a little bit

differently; a lender who is always growing and changing with the times.”

- Boris Bozic, Founder & CEO of MERIX Financial

MERIX vs. Lendwise

The difference between MERIX and Lendwise is compensation - MERIX pays you trailer fees for

the life of the mortgage while Lendwise will pay you upfront compensation. As an Approved

Originator, you have access to both brands at any time. See the compensation section for

details.

Who is NPX?

NPX is an innovative, solution-based, full-suite alternative product offered in the Province of

Ontario. An avenue that meets the needs of those who are self-employed, those with non-

traditional incomes or with a blemish on their credit score; the NPX product focuses on borrowers

that need more considered than just credit. For more information on NPX, see the NPX Ontario

Broker Kit.

2

MERIX Corporate Partners

Paradigm Quest

MERIX works in partnership with Paradigm Quest Inc. (Paradigm) to provide affordable mortgage

financing to Canadian consumers. Paradigm, an experienced and growing mortgage servicing

company, is responsible for underwriting the mortgage and servicing of MERIX and Lendwise

mortgages. Rated by Standard and Poor’s, a global provider of financial market intelligence, credit

ratings and risk evaluation, Paradigm arranges the funding of MERIX and Lendwise mortgages

through a number of capital market institutional investors. Paradigm has offices in Vancouver,

Toronto and Montreal.

Computershare Trust Company of Canada

Computershare Trust Company of Canada (Computershare) is the largest corporate trust service

provider in Canada. To ensure MERIX and Lendwise mortgages meet CMHC requirements,

Computershare acts as a custodian of the securities. They are required to register MERIX and

Lendwise mortgages in the name of “Computershare Trust Company of Canada.” The mortgage is

registered in the name of “Computershare Trust Company of Canada,” and customers will see this

name on some of their mortgage documents. Please be assured that MERIX remains the point of

contact for any customer service inquiries after mortgages have been funded.

First Canadian Title

MERIX has selected First Canadian Title (FCT) an organization which specializes in facilitating

mortgage transaction including: providing title insurance, document processing and third-party

funding for financial institutions. MERIX and Lendwise use FCT to contact the appropriate solicitor

and send instructions to close each mortgage. This process centralizes all aspects of the legal

portion of the mortgage and results in greater efficiencies and increased ease of communication.

Mortgage Insurance

MERIX works with Genworth Canada, CMHC, and Canada Guaranty

3

Doing Business with MERIX and Lendwise

MERIX and Lendwise Support Centres

MERIX and Lendwise Head Office

56 Temperance Street, Suite 400

Toronto, ON M5H 3V5

T: 1-888-637-4920

MERIX and Lendwise Approval Centre T: 1-877-MERIX-11 (1-877-637-4911)

8 am to 8 pm ET, Monday – Friday

Online Broker Portal:

https://merixfinancial.brokerstatus.com

➢ Quebec Underwriting Centre 2001, boul. Robert-Bourassa, Suite 830

Montreal, QC H3A 2A6

➢ Toronto Underwriting Centre 390 Bay Street, Suite 1800

Toronto, ON M5H 2Y2

➢ Vancouver Underwriting Centre 1285 West Pender Street, Suite 520

Vancouver, BC V6E 4B1

MERIX and Lendwise Customer Service T: 1-877-MERIX-14 (1-877-637-4914)

8 am to 8 pm ET, Monday - Friday

customerservice@merixfinancial.com

Online Customer Portal with Live Chat:

https://merix.mymortgagedetails.com

For Insurance Binders Computershare Trust Co. c/o Paradigm Quest Inc

390 Bay Street, Suite 1800

Toronto, ON M5H 2Y2

4

MERIX and Lendwise Key Contacts

Director, Business Development

•Provide expertise on compensation, products, and programs •Review potential deal scenarios •Dedicated resource for business support

Personal Account Manager

•Provide expertise on compensation, products, and programs •Review potential deal scenarios •Discuss and adjudicate deals •Discuss and review required file documents

Underwriter •Review potential deal scenarios •Discuss and adjudicate deals •Review exception requests

Credit Administrator •Discuss and review required file documents

Broker Portal

•View your current files •Upload required file documents •Access product and program information, forms, and current interest rates •Create sub-agent access https://merixfinancial.com.brokerstatus.com

Xreward Enquiries xrewards@merixfinancial.com

Appraisal Reimbursements (Status & Switches)

status@merixfinancial.com

Customer Service

1-877-MERIX-14 (1-877-637-4914) customerservice@merixfinancial.com https://merix.mymortgagedetails.com * There is a Live Chat feature on our Customer Portal

Retention Department retention@paradigmquest.com

Collections Department collections@paradigmquest.com

5

Compensation and Rewards

MERIX Compensation For originators who want to build a book of business that has ongoing value, our Trailer Fee

models allow you to:

• Create a long-term revenue stream

• Get paid on assets under administration, not just transactions

• Benefit from our relationship with the client

• Create an exit strategy from this business

*To see the current MERIX compensation structure click here.

Lendwise Compensation

For originators who prefer to maximize their upfront compensation:

• Compensation for each tier level will advance as funded deals thresholds are achieved;

MERIX and NPX deals are not included in this volume

• Monthly Efficiency Bonuses will be paid to originators that achieve or surpass an ongoing

50% Application-to-Fund (ATF) Ratio

• Additional bonuses are earned on insured/insurable deals

• Please note – renewal and trailer fees are not paid on Lendwise deals

*To see the current Lendwise compensation structure click here.

XRewards

As part of the MERIX Compensation Program, originators may elect to be paid trailers and

renewals fees in the form of XReward Credits:

• XRewards allow originators to build up their pool of reward credits with a cash value

• XReward credits are part of the broker’s compensation and they can be redeemed for cash

outs, file related expenses, and industry events.

• Your XRewards balance can be seen in your eXplore Broker Portal or by emailing

xrewards@merixfinancial.com.

*For more information on XRewards, click here.

6

basisPOINTS

MERIX is proud to offer a basisPOINTS Program where Originators earn points on every deal

funded with MERIX and Lendwise. basisPOINTS are discretionary pricing credits which allow you

to buy down rates on future deals.

• basisPOINTS can be redeemed at your discretion to price new business

• You must have an Application-to-Fund ratio (ATF) of 50% of greater to use your

basisPOINTS

• The Program is FREE and open to all originators

• You will receive 1000 basisPOINTS per deal funded at MERIX or Lendwise. 1000

basisPOINTS is the equivalent of $90 in buydown power

*To see the current basisPOINTS program click here.

Status Program

The MERIX Status Program is designed to provide a series of exclusive privileges and

benefits for our approved originators. There are three status levels: Select, Premier, and

Elite and they are based on annual funded deals between MERIX and Lendwise combined.

The more you fund with us, the higher your Status Level and the more benefits you are

entitled to including appraisal reimbursements and higher points earnings.

All originators who qualify under the Status Program for that year are also eligible to win an

all-expenses paid trip with MERIX Senior Leadership and other top MERIX originators.

*To learn more about the current MERIX Status Program and this year’s trip details

click here.

XRewards vs. basisPOINTS:

basisPOINTS can only be used for rate buy downs and there is a minimum ATF to use them.

XRewards credits are part of the broker's compensation and they can be used for buy-downs, cash

outs or industry events. BasisPOINTS expire and XRewards do not.

7

Products and Policies

General Product Information

Adjustable Rate

A closed mortgage term that offers client(s) the ability to take advantage of low,

short-term interest rates while offering the option to convert to a fixed rate

mortgage at any time during the term.

• Client payment amount is based on their current interest rate and amortization

• Interest in compounded monthly, not in advance

• Can be converted into a CLOSED Fixed Rate mortgage at any time. The new

fixed rate term must be greater or equal to the remaining term left on their ARM

For product details click here.

Business for Self – ALT A

The Business for Self - ALT A program is designed for the self-employed

individual(s) that cannot provide traditional sources of income verification

• The income reported by the borrower must be reasonable based on the industry,

length of operation and type of business

• Minimum 650+ beacon/FICO score

For programs details click here.

Business for Self – Fully Qualifying

The Business for Self - Fully Qualifying program is designed for the self-employed

individual(s) that have traditional verification of income.

• Self-employed line 150 NOA income may be grossed up by 15% or allowable

add- backs may be used if the client is a sole proprietor or half-owner in a

business

• Minimum beacon/FICO of 600+ up to 80% LTV, 620+ up to 95% LTV

Family Plan

Enables homebuyer(s) to assist family members that don’t meet income

requirements with the purchase of a home. Suited for parents wishing to buy a

home for their children in post-secondary schools and for adult children buying a

home for their elderly parents.

• An immediate family member is defined as a father, mother, child, brother, sister,

grandparent, legal guardian, or legal dependant

• Minimum 680+ beacon/FICO score

For program details click here.

8

Fixed Rate

Mortgage

A closed mortgage term that offers client(s) the comfort of knowing their mortgage

payment will not change throughout the term of the mortgage.

• Interest rate is fixed for the term of the mortgage

• Interest is compounded semi-annually, not in advance

For product details click here.

Flexible

Down

Payment

Suitable for home buyer(s) who have established excelled credit history but have

not accumulated the required down payment or choose not to use their savings for

other asset enhancing purposes.

• Clients can use existing credit facilities and/or gifts or borrowed funds from

immediate family members as their down payment

• Equity can be borrowed from any arm's length source, including personal loans,

line of credit, or credit cards. Always include loan repayment in the TDS calculation

at standard debt-servicing guidelines

For program details click here.

New to

Canada &

Newcomers

Qualified homebuyer(s) who have immigrated to Canada from another country, or

have been transferred to Canada by an employer can qualify for mortgage

insurance with as little as a 5% down payment.

• Up to 90% LTV: Letter or reference from a recognized financial institution OR six

months bank statements

• Up to 95% LTV: International credit bureau OR two alternative sources of credit

demonstrating timely payments (rent letters and hydro/utilities, telephone or cable)

For program details click here.

Owner-

Occupied

Rental

Properties that contain one to four units located in an urban city. Suited for

homebuyer(s) that have established excellent credit history and wish to occupy at

least one unit within the property.

• Client(s) can have a maximum of 5 residential properties (maximum 4 rental

properties)

• Minimum beacon/FICO score of 600+ up to 80% LTV, 620+ up to 95% LTV

9

Purchase Plus

Improvements

Suitable for home buyer(s) that require improvements to their newly purchased

home. The purchase and the improvements are combined into one mortgage and

a single advance.

• Improvements cannot exceed 20% of the initial value of the property or $40,000

• Minimum beacon/FICO score of 620+

For program details click here.

Rate Plus

Mortgage

The Rate Plus Mortgage allows clients to take advantage of competitive low

interest rates and a full-featured mortgage with all the benefits.

• Full 20/20 pre-payment privileges available

For program details click here.

Rental

Non-Owner

Occupied

Properties that contain two to four units located in an urban city.

• Client(s) can have a maximum of 5 residential properties (maximum 4 rental

properties)

• Minimum beacon/FICO score of 680

• 50% of rental income from the subject property may be included into the

borrower's gross annual income for the purpose of calculating borrower's TDS

• Rentals are allowed in the name of a holding company

For program details click here.

Second Home

Program

Designed to assist homebuyer(s) with the purchase of a second home.

• Property must be intended for occupancy at some point during the year by a

borrower; or a relative of the borrower on a rent-free basis

• Minimum 680+ beacon/FICO score

For program details click here.

Switch/Transfer

Allows borrower(s) to transfer their existing mortgage from another lender to

MERIX or Lendwise quickly and efficiently.

• The mortgage can be increased up to $3,000 over the existing principal balance

outstanding to be transferred to cover related transaction costs: per diem,

accrued interest, administrative fees and penalties

• Minimum loan amount $75,000, minimum amortization 10 years

• Minimum beacon/FICO score of 600+ up to 80% LTV, 620+ up to 95% LTV

For program details click here.

10

Underwriting Matrix and General Guidelines

Disclaimer:

The information provided is for general information purposes. Satisfying the minimum requirements

alone does not automatically result in an mortgage approval. Commitments will be issued based on

an assessment of the strength of the overall application by MERIX and its insurer partners.

Individual promotions and programs must have specific beacon/FICO score, TDS/GDS requirement,

and documentation needs. Please refer to your Director, Business Development and/or Underwriter

or Personal Account Manager for more details.

11

Appraisals

• All refinances, private sales, properties with renovations, sold “as is”, estate sales,

power of sale, and properties on lots greater than 5 acres will require an appraisal

• Appraisals must be ordered through NAS, Brookfield of FNF

• Appraisals must be no older than 3 months

• No drive by evaluations accepted

• Appraisal rebates available post-funding for all Switches and for Select,

Premier, and Elite Status originators on purchase transactions

Acreages Appraisals

• Appraisal will be based on the house and 5 acres only, no outbuildings

• Maximum property size is 50 acres. Properties exceeding 50 acres in size will be

reviewed on an exception basis

• Property must be for residential use only but may include some agriculture

structures such as a barn or stable

• Maximum annual income of $50,000 may be generated using buildings or

land but this income can not be used to qualify

Amortization

• Minimum 15 years for purchases/refinances, and 10 years for Switches/Transfers

• Maximum 25 years Insured and Insurable or 30 years Uninsured

Closing Costs

• 1.5% of the value of the property

Credit

• Credit Bureau must be dated within 30 days of submission

• Applicants must have a minimum 2 years’ credit history on credit bureau

• Refinance applications require documented evidence of a minimum of 12 months’

mortgage history from last mortgage activity

• Bankruptcy/Consumer Proposal/OPD is not accepted under any circumstances

Debt Servicing

• Revolving Trades: 3% of outstanding balance

• Installment Loans: Payment on credit bureau

• Student Loan/Line of Credit: Payment on credit bureau if reporting or 3% of

balance, if not in repayment

• Secured Line of Credits: Balance amortized over 25 years against the Bank of

Canada’s conventional five-year fixed posted rate

12

Heat Calculation

• Account Statement OR $1.00/sq foot

• Condo fees: 50% of total fees

Insured and Insurable Deals - Purchases and Switch/Transfers

• Minimum $75,000 to a maximum purchase price or as-improved value of $999,999

• Minimum amortization 15 years for Purchases and 10 years for Switches/Transfers

• Maximum amortization 25 years

• Must qualify at the Bank of Canada benchmark rate

• Conventional (bulk insured) and High Ratio available

Non-Insured (Uninsured) Purchases and Refinances

• Existing residential properties only

• Minimum loan amount for purchases $100,000 and minimum $150,000 for refinances

• Minimum amortization 15 years; Maximum amortization 30 years

• Must qualify at the greater of the Bank of Canada benchmark rate of contract rate plus 2%

• Maximum LTV is based on lending area and sliding scale.

Pre-Payment Options:

• Prepay up to 20% of the Original Principal Balance each year based on the anniversary of

the loan (minimum payment is $100).

• Increase payments by up to 20% of the original registered amount each anniversary year.

• Prepay or increase payments in combination – combined prepayment must be within 20% of

the original principle balance

Property Types

• Borrowers can own a maximum of 5 residential properties (maximum 4 rental properties)

• House: minimum 800 sq ft; Condo: minimum 500 sq ft in Vancouver, Toronto, and Montreal.

600 sq feet for the rest of Canada

• Valuation is based on 5 acres, house and garage

• Leased land is acceptable provided the lease is prepaid government leased land (municipal

and federal) and there are no restrictions to access.

• No mobiles in a park-like setting, rental pools, fractional interest, log homes

Title Insurance

• Lender title insurance is required on all mortgages and this is a part of our

instructions to the solicitor/closing services

13

E-Signature Policy

An E-Signature is the digital equivalent of a handwritten signature and provides MERIX with acknowledgement and consent from the signer.

We accept E-Signatures on the following:

• Purchase & Sale Agreement

• Employment Letter

• Down Payment Gift Letter

• Broker Consent

• Commitment Letter

• PAD Form

All documents contained within the solicitor’s package still require a wet ink signature at the solicitor’s office. Common solicitor documents include:

• Loan Agreement/Cost of Borrowing Agreements

• Mortgage Charges

• Privacy Agreement

Income Confirmation Overview

Acceptable Income Confirmation and Sources

Letters of Employment

• Salaried/Hourly Employees

• Maternity/Parental/Adoption Leave (100% of employment

income can be used)

• Pension/Disability Income

Notice of Assessment • Self-Employed (income can be grossed up by 15%)

14

• Fluctuating income (i.e. commissions, bonuses, profit

sharing, overtime, gratuities)

• Contract Employment

• Investment income

• Professionals [defined as: Physicians, dentists,

veterinarians, lawyers, accountants

** Notice of Assessments may require a signed T1013

Payroll Statement (Pay

Stubs)

• Salaried/Hourly Employees

• Pension Income

• Disability/Workers Compensation

Direct Pay Deposit

• Salaried/Hourly Employees

• Pension Income

• Disability Income

Other Income Sources

Alimony/Child Support

• Most recent Notice of Assessment supported by a copy of

the formal separation agreement OR

• Four months history showing regular alimony/child support

payment deposits supported by a copy of the formal

separation agreement

Foster Care/Care Aide

Income

• This type of income is reviewed on a case by case basis

• Borrower must have at least two years’ experience as

Foster parents/Care aide

Canada Child Benefit

• 100% of the CCB may be used provided it does not

represent more than 30% of the total qualifying income.

• Applicable for primary residence only

• Children must be under 12 years of age at the time the

mortgage is advanced

Other Income Sources continued.

Maternity/Parental/Adoption Leave

• Full return to work salary is acceptable for qualification

purposes. A letter from the employer is required indicating

the position the person is returning to, the return date, and

the salary/income upon return.

Investment Income/RRIF Income

When confirming Investment Income copies of the investment

statements are required to confirm the assets generating the

income, along with Notice of Assessment as detailed below:

15

• Line 150 provides a total of all reported sources of income

• Tax arrears must be confirmed as paid prior to advancing

credit

• 2-year average required

Non-Taxable Income Sources

Indian Act exemption for employment income (On reserve income)

• Letter of employment from the Band Chief

OR both of the following:

• Average of 2 most recent years Notice of Assessments

• Must confirm income is non-taxable

Non-Taxable Pension Income

• Letter of employment OR

• Payroll statement/pay stub OR

• Pension statements OR

• Direct deposit proof (i.e. bank statements, passbook,

internet banking statements)

Disability Income

• Letter from institution paying the disability income

indicating the disability is permanent and the disability

income is guaranteed for the life of the applicant

Workers Compensation Payments

• Letter from institution paying the worker’s compensation

benefits

• Payroll statement/pay stub

Grossing up non-taxable Income Eligible non-taxable income can be grossed-up for the purposes of calculating GDS/TDS ratios, based on the following two-tier gross up approach:

• Borrowers with non-taxable income less than $30,000 are eligible to have their non-taxable income grossed-up by 25%

• Borrowers with non-taxable income of $30,000 or more are eligible to have their non-taxable income grossed-up by 35%

Down Payment Confirmation Overview

Legitimate Sources of Down Payment and Confirmation

Bona Fide Savings of the

Applicant

• Bank statements, Passbook's or Internet Banking Statements

must show savings accumulation over time (minimum 3

months history).

16

• Ownership of bank statements, passbooks or internet print

outs must be further confirmed where the name and account

number are NOT clearly noted in the front of the passbook or

on the bank statement or internet print out.

• Deposits provided with the Offer to Purchase: If this amount

represents a large percentage of the total down payment,

further confirmation will be required to ensure funds come

from applicant's own resources.

Gift from relatives

• Gift must be from an immediate family member

• Letter of confirmation verifying the gift is unencumbered and

requires no re-payment.

• In addition to Gift Letter, verification that the funds are on

deposit in the client's account prior to closing must be

provided.

Liquid/Other Assets

• Bonds, Securities, and Stocks. RRSP’s may also be used,

however if not part of the Home Buyer’s Plan, may be subject

to withholding tax.

• Copies of the client's statements from Financial Institutions

showing the description of the assets and the current value.

Locked-In RRSPs cannot be used for down payment as they

represent pension assets.

Net proceeds from the sale

of property

• The actual offer to purchase and sale together with a

mortgage statement, if applicable. The offer of sale must be

firm (unconditional).

• Real Estate commissions, solicitor fees and other costs

associated with the property sale must be considered when

calculating the net equity or proceeds from the sale.

Closing the deal: Customer Options

Assumptions

All MERIX mortgages may be assumed upon qualification. An assumption is if you are removing

existing borrower(s) and adding new borrower(s) to the mortgage. An assumption is differentiated

from a covenant change for the reason that there are entirely new borrower(s) on the mortgage

17

and no existing borrower(s) remain on the mortgage. New borrower(s) must be qualified for the

mortgage.

Conversions (ARM rate or Fixed Rate)

MERIX will hold the fixed rate for an ARM conversion for up to the next scheduled payment date

and the change to fixed rate will occur on the next payment date. Borrowers may choose fixed rate

term equal to or greater than their existing ARM term. The amortization period of the mortgage

may not be changed on a conversion

Covenant Changes

A covenant change is defined as adding, replacing or removing a borrower(s) from the mortgage. A

covenant change requires that at least one existing borrower remains on the mortgage. All

borrower(s) must be qualified for the mortgage.

• All existing terms of the mortgage remain the same – rate, term, amortization and maturity

date

• Notarized letter of consent or separation agreement required

• Valid for 120 days, if all broker and solicitor conditions are not finalized than a new

application is required with updated credit bureaus

• There is a $150.00 application fee for all covenant change applications payable to MERIX

• The borrower(s) are responsible for all legal fees incurred in the processing of a covenant

change

Mortgage Penalties

For Fixed Rate terms of 5 years or less:

• Greater of IRD or 3 month’s Interest. IRD is based on difference between customer rate and

the then current interest rate offered by MERIX for a term closest to the term remaining on

the mortgage

18

Term more than 5 years:

• If you have a fixed interest rate on your mortgage and a term greater than 5 years and:

a) Prepayment occurs within the first 5 years of the term, payment of a prepayment charge

equal to the GREATER of the interest rate differential (IRD) or 3 months interest calculated

on the outstanding loan amount, and

b) If prepayment occurs after the first 5 years of the term, payment of a prepayment charge of

3 months interest calculated on the outstanding loan amount

3 and 5-year ARM term:

• 3 months interest at the current customer rate on the prepaid amount that exceeds the annual

prepayment allowance

Payment Frequencies

MERIX allows the following payment frequencies:

• Monthly

• Semi-Monthly

• Accelerated Bi-weekly

• Accelerated Weekly

• Non-Accelerated Bi-weekly

• Non-Accelerated Weekly

Pre-Payment Privileges

• Prepay up to 20% of the Original Principal Balance each year based on the anniversary of

the loan (minimum payment is $100).

• Increase payments by up to 20% of the original registered amount each anniversary year.

• Prepay or increase payments in combination – combined prepayment must be within 20% of

the original principle balance

19

Renewals

A renewal notice will be sent 90 days prior to the borrower(s)’ maturity date and the rate guarantee

will be for the 90-day period prior to the maturity date of the original mortgage.

Taxes

MERIX can collect and pay taxes to the city or township on the client’s behalf. In order to enroll in

the property tax program, the client must fill out a tax application and submit it alongside their most

recent property tax bill. Tax applications are located at: https://merix.mymortgagedetails.com.

Once submitted, our property tax department will calculate the tax payment and send the client a

tax quote confirmation the tax amount, frequency, any bills the client will be responsible for and the

bill MERIX will pay on their behalf. Clients will be required to send a written (letter or email)

confirmation to proceed with enrollment.

There is a $2.00 admin fee per month and any bill due within the first 3 months of enrollment will be

the client’s responsibility.

Title

Notwithstanding how title is taken (Joint Tenants vs. Tenants in Common), MERIX requires all

parties on title to be on the mortgage, and jointly and severally liable for the payment of the entire

mortgage debt and the performance of all related obligations.

Title Insurance

MERIX requires lender title insurance on all Mortgages and this is a part of our instructions to the

solicitor/closing service.

Welcome Letters

Clients will receive a welcome letter via Canada Post or by email. The welcome letter includes

important information about their mortgage which they should keep for their records. The

information includes: account number, principle balance, term, maturity date, payment amount and

frequency, and MERIX/Lendwise contact information.

For a list of commonly asked customer questions and answers, click here.